Before you click on the link below to gain access to FREE tax preparation software, ask yourself this question:
Do you want the IRS1 to prepare your return?
Your answer should be: NO.
Little do you know: The IRS is more involved in preparing your tax return than you ever imagined!
The IRS1 has a far greater role and more involvement in preparing your tax return than you imagine.
- The IRS was deeply involved in the early design of tax software preparation software (1980s) particularly in developing the default protocols.
- This deep involvement strongly impacts your tax return today.
- For 85%+2 of entrepreneurs, the IRS is helping to prepare your tax return.
- There is a practical and safe way to avoid the IRS preparing your tax return.
Perhaps based on urban legends, maybe the true story has been lost over time, and conceivably it is more complicated than I (John C. Brooke) think, but these secrets are based on my opinions, my experience, my observations, and my conclusions.
I started working for the largest CPA firm in the world (Peat, Marwick, Mitchell & Co.) in 1975. In 1979, I formed my CPA firm and was heavily involved in all aspects of tax accounting.
In those days, tax returns were prepared by hand and typed before delivery to the client. The tax return process was very labor intensive but with meaningful strategic thinking time.
By the early to mid-1980’s, various companies offered tax preparation software to reduce intensive labor costs.
In theory, the idea of tax software was great. In practice, there was much to be desired.
The labor time for typing was greatly reduced. This was good as typing did not improve the quality of the return.
The various software platforms processed the same information differently and produced widely differing tax returns. This was not good.
WHY? The programs were built by programmers not tax accountants.
The tax code generally has many options on how to report the same transaction. This is called social engineering.
When faced with these many options under the tax code, different programmers chose different options as the default. (A default is the option always used unless the preparer stops and makes a change.) It was the difference between default options which caused the material differences in the returns and stopped me, like many other CPA’s, from buying the software.
Secret #1: The major software developers of the day built “typical” scenarios (maybe 250+) and teamed with the IRS to find a common path for default programming.
Secret #2: The IRS became very involved, through software design, in preparing returns; that same IRS impact continues today.
Secret #3: Bungled tax preparation through mindless application of tax revenue-favored software causes 85%+2 of entrepreneurs to pay too much in tax.
These were the results of the 3 secrets above.
- The differences in tax returns between software companies dramatically decreased.
- User-ease dominated the software selection process.
- Strategic thinking time by the CPA’s significantly decreased and became very insignificant.
- The focus shifted from unique thought and lowering taxes to a tax return that could withstand audit by the IRS.
- With the IRS “collaborating” on the software defaults, it is reasonable to assume they would like the results…more tax revenue raised for the government!
- The software of today is built on the chassis of this 1980’s “collaboration”.
- Today, most tax firms’ revenue is from tax preparation and not from strategic thinking.
- Tax preparation today is mostly data entry.
Being programmers, they did allow for non-default options, but it required you to change a multitude of options for each tax return.
Given the economic pressure to lower fees caused by the market, ease of entry into the market with software that did not require an extensive understanding of the tax code, and the short season when tax returns are prepared, it became very impractical to change multiple default settings for each client.
The default options scenario established in collaboration with the IRS became the rule of the day.
The tax code brings you HOPE.
Part of that HOPE is you have a choice.
You can choose.
- To learn the practical and safe way to avoid the IRS preparing your tax return contact your referring agent or call Cash Flow Mastered at 801.417.3260.
- Or you can CLICK HERE to link to the IRS website and have your tax return prepared for FREE.
If you don’t take the ASSESSMENT and visit with us, why not have the IRS prepare your tax return?
It is your choice!